Note 1: See "Non-IFRS Financial Measures" section of the Company's Management Discussion & Analysis for the three and six months ended June 30, 2016.

Business Highlights

Revenue for the quarter ended June 30, 2016 declined to $25.0 million from $38.2 million in 2015, reflecting lower activity levels and pricing in the oil and gas industry;

Adjusted EBITDA declined to $0.7 million during the three months ended June 30, 2016 from $4.6 million in 2015, while adjusted net loss increased slightly to $5.8 million from $5.6 million a year earlier;

In May 2016, ENTREC acquired the business and assets of HighMark Crane Ltd., expanding its operations into Manitoba and Newfoundland & Labrador;

In June 2016, ENTREC amended the terms of its convertible debentures to extend the maturity date from October 31, 2017 to June 30, 2021 and increase the interest rate from 7.00% to 8.50%; and

During the six months ended June 30, 2016, ENTREC reduced its long-term debt, notes payable and finance lease obligations by $13.0 million.

Overall Performance and Outlook

Revenue for the quarter ended June 30, 2016 decreased by 34% to $25.0 million from $38.2 million in 2015. On a year-to-date basis, revenue declined by 38% to $55.6 million from $89.3 million in 2015. With the depressed commodity price environment for oil and natural gas, activity levels for crane and specialized transportation services throughout western Canada and in North Dakota continued to be very weak. In addition, ENTREC also experienced downward pricing pressure from its customers over the past year as they worked to reduce their expenditures in response to the current commodity environment. On average, the Company estimates these pricing reductions negatively impacted revenue by approximately 20%.

Adjusted EBITDA declined to $0.7 million for the quarter ended June 30, 2016 from $4.6 million in 2015. On a year-to-date basis adjusted EBITDA declined to $2.1 million from $12.0 million a year earlier. The lower adjusted EBITDA reflected reduced equipment utilization levels as well as lower pricing. Partially offsetting the lower adjusted EBITDA were decreases in direct costs and general and administrative expenses through ENTREC's cost reduction initiatives. In 2016, ENTREC is targeting to reduce its operating costs by $13 million on an annual basis.

Given the uncertainties in the oil and gas end markets ENTREC serves, its outlook remains weak for the remainder of fiscal 2016. Lower demand for the Company's services supporting oil and natural gas exploration and production activities will continue to negatively impact is financial results.

While ENTREC recently began to see some positive signs from customers in the conventional oil and gas industry with oil prices rebounding to more than $51 USD / barrel in June, the Company subsequently saw oil prices again retract by nearly 20% over the past month. As a result, there remains significant uncertainty overall as to the magnitude and timing of any future recovery in activity levels in the oil and gas industry.

ENTREC continues to establish its presence in the market for MRO work in the Alberta oil sands region - which is typically less susceptible to changes in near-term commodity prices, and should continue to provide a steady demand for the Company's services over the next year and beyond. This work could contribute to over 20% of consolidated revenue in fiscal 2016.

ENTREC is also pursuing a number of power and infrastructure projects, which will help to diversify its revenue outside oil and gas. The Company's recent expansion into Manitoba and Newfoundland & Labrador, through its acquisition of HighMark Crane Ltd., strongly positions ENTREC to capture more power-related opportunities.

The Company is growing its presence in the Permian Basin through its newly established location in Midland, Texas. ENTREC believes that as oil prices recover, this area will be one of the first regions in North America to experience higher oilfield activity levels due to lower production costs for producers.

Despite short-term uncertainties and challenges, ENTREC continues to be well-positioned geographically, with a complete range of crane and specialized transportation services in each of its key markets across western Canada, North Dakota, and now in west Texas and Manitoba. ENTREC also continues to be an industry leader in customer service and safety, which will be key contributors to its success in the long-term.

Convertible Debenture Amendments

In June 2016, ENTREC successfully amended the terms of its unsecured convertible debentures (the "Debentures") to extend the maturity date from October 31, 2017 to June 30, 2021. The amendments were approved by the holders of the Debentures at a special meeting of debenture-holders held on June 10, 2016. The amendments also included increasing the underlying interest rate from 7.00% to 8.50% effective October 31, 2016; and decreasing the conversion price from $2.60 to $1.00 per share. ENTREC will also redeem on a pro rata basis $3.5 million of the principal amount of the amended Debentures on October 31, 2017.

These amendments will provide ENTREC with additional flexibility to manage the current economic downturn as well as capitalize on attractive growth opportunities in the near and medium term.

A complete set of ENTREC's most recent financial statements and Management's Discussion and Analysis will be filed on SEDAR (www.sedar.com) and posted on the Company's website (www.entrec.com).

Second Quarter Conference Call

ENTREC will host a conference call to discuss its 2016 second quarter financial results tomorrow, August 12, 2016 at 8:30 am Mountain Time (10:30 am Eastern). The call can be accessed by dialing toll-free: 1-866-223-7781or 416-340-2216 (GTA and International).

A replay of the call will be available approximately two hours after the completion of the call until Friday, August 19, 2016 by dialing 905-694-9451 / 1-800-408-3053, passcode: 1001441.

About ENTREC

ENTREC is an employee-owned heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries. ENTREC is listed on the Toronto Stock Exchange under the symbol ENT.

Non-IFRS Financial Measures

Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation, amortization, loss (gain) on disposal of property, plant and equipment, foreign exchange loss (gain) on long-term debt, loss (gain) on change in fair value of embedded derivatives and convertible debentures, share-based compensation, bargain purchase gains, impairment of long-lived assets, and non-recurring business acquisition and integration costs. In addition to net income, Adjusted EBITDA is a useful measure as it provides an indication of the financial results generated by ENTREC's principal business activities prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions and before certain non-cash expenses. Adjusted EBITDA also illustrates what ENTREC's EBITDA is, excluding the effect of non-recurring business acquisition and integration costs. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue. Per share amounts are calculated as adjusted EBITDA divided by the basic weighted average number of shares outstanding during the period.

Adjusted net (loss) income is calculated excluding the after-tax amortization of acquisition-related intangible assets, impairment of long-lived assets, notional interest accretion expense arising from convertible debentures, loss (gain) on change in fair value of embedded derivatives and convertible debentures, foreign exchange loss (gain) on long-term debt, and bargain purchase gains. These exclusions represent non-cash charges the Company does not consider indicative of ongoing business performance. ENTREC also believes the elimination of amortization of acquisition-related intangible assets provides management and investors an improved view of its business results by providing a degree of comparability to internally developed intangible assets for which the related costs are expensed as incurred. Adjusted earnings (loss) per share are calculated as adjusted net (loss) income divided by the basic weighted average number of shares outstanding during the applicable period.

Funds from operations is derived from the consolidated statement of cash flows and is calculated as cash provided by operating activities before changes in non-cash operating working capital. Per share amounts refer to funds from operations divided by the weighted average number of shares outstanding during the period. ENTREC believes funds from operations is a useful supplement measure as it provides an indication of its ability to generate cash flow and is a useful measure in analyzing its operating performance.

Working capital is calculated as current assets less current liabilities. Working capital ratio is calculated as current assets divided by current liabilities. ENTREC believes working capital is a useful supplemental measure as it provides an indication of its ability to settle its debts as they come due.

Please see ENTREC's Management Discussion & Analysis for the three and six months ended June 30, 2016 for reconciliations of adjusted EBITDA and adjusted net (loss) income to net (loss) income, the most directly comparable financial measure calculated and presented in accordance with IFRS.

Forward-looking Statements

This press release contains forward-looking statements which reflect ENTREC's current beliefs and are based on information currently available to ENTREC. These statements require ENTREC to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond ENTREC's control.

Examples of forward-looking statements in this press release and the key assumptions and risk factors involved in such statements include, but are not limited to the following: (i) ENTREC's estimate that its 2016 cost reduction initiatives will reduce operating costs by a further $13 million on an annual basis. This estimate is contingent on the Company's ability to fully execute its cost reduction plan. This execution is dependent on a number of factors, including future changes in overall economic conditions, workforce availability and its ability to sublease certain facilities and receive concessions from landlords on anticipated terms; (ii) ENTREC's expectation that the remainder of fiscal 2016 will continue to be weak given the uncertainties in the oil and gas end markets it serves with ongoing downward pricing pressure from customers along with lower demand for its services supporting oil and natural gas exploration and production activities continuing to negatively impact its financial results. This expectation is based on the assumption that reduced activity and customer pricing will continue in 2016 due to low crude prices; (iii) ENTREC's anticipation that its MRO work in the Alberta oil sands region will be less susceptible to changes in near-term commodity prices and could contribute to over 20% of the Company's consolidated revenue in 2016. This anticipation is based on the assumption that MRO customers will continue to utilize ENTREC's services for their ongoing operational activities in the Alberta oil sands and that these activity levels remain comparable with the first half of 2016. This assumption is subject to a number of risks. The risks most likely to affect this assumption include volatility of the oil and natural gas sector, Alberta oil sands exposure, economy and cyclicality, and competition; (iv) ENTREC's belief that the acquisition of HighMark strongly positions the Company to capture more power-related opportunities. This belief is subject to a number of risks and uncertainties including economy and cyclicality and competition; (v) ENTREC's expectation that as oil prices recover, the Permian Basin will be one of the first regions in North America to experience higher oilfield activity levels due to lower production costs for producers. This expectation is subject to the assumption that oil prices will rise at some time in the future and that oil producers in the region will achieve sufficient economic returns in order to increase their activity levels; (vi) ENTREC's intention to redeem on a pro rata basis $3.5 million of the principal amount of the Debentures on October 31, 2017. This intention is subject to the risk that the Company will not have the financial resources to complete such redemption or that it will be restricted from completing that redemption due to restrictions contained in its senior debt facility; and (vii) ENTREC's belief that the amendments to the Debentures will provide it with the financial flexibility to manage the current economic downturn as well as to capitalize on attractive growth opportunities in the near and medium term. This belief is subject to a number of risks. The risks most likely to affect this flexibility include volatility in the oil and gas sector, economy and cyclicality and competition.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, ENTREC. These forward-looking statements are made as of the date of this press release. Except as required by applicable securities legislation, ENTREC assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.